Eligible Services Fall 2014 Applicant Trainings

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1 E rate Program Eligible Services Fall 2014 Applicant Trainings Overview Draft Eligible Services List (ESL) Category One Category Two Eligible Services Broadband Voice Services Eliminated Services Eligibility Limitations Miscellaneous Lit and Dark Fiber Pricing Transparency Bundling Order Internal Connections Eliminated Internal Connections Managed Internal Broadband Networks Basic Maintenance of Internal Connections Eligible Services I Fall 2014 E rate Program Applicant Trainings 2 1

2 Draft Eligible Services List The FY 2015 Draft ESL was released August 4 th, 2014 Comments were due 9/3/14 and reply comments were due 9/18/14 Streamlined Eligible Services For FY 2014, the ESL was 49 pages For FY 2015, the Draft ESL is 6 pages Divides services into Category One (those providing highspeed connectivity to the building) and Category Two (those services providing high speed connectivity throughout the building) Eligible Services I Fall 2014 E rate Program Applicant Trainings 3 Draft Eligible Services List Eligible Services Focus support on Broadband Phase down of Voice Services Eliminates outdated legacy services and other former Priority One services Eligible Services I Fall 2014 E rate Program Applicant Trainings 4 2

3 Draft ESL Category One Eligible Data transmission services and Internet Access ATM Broadband over Power Lines Cable Modem DSL DS 1, DS 2, DS 3 Ethernet Fiber (Lit and Dark) Frame Relay ISDN OC 1, OC 3, OC 12, OC n Satellite Services SMDS Telephone Dialup T 1, T 3, Fractional T 1 Wireless Service (e.g. microwave) Eligible Services I Fall 2014 E rate Program Applicant Trainings 5 Draft ESL Category One *NEW* Eligible Voice Services Subject to Phase Down Centrex Circuit capacity dedicated to providing voice service Interconnected VoIP Local, long distance, 800 service POTS Radio Loop Satellite telephone service Shared telephone service Wireless telephone service including cellular voice Excludes data and text messaging Eligible Services I Fall 2014 E rate Program Applicant Trainings 6 3

4 Draft ESL Category One *New* Eliminated outdated legacy services and other former Priority One services Paging Directory assistance charges Text messaging Custom calling services Direct inward dialing 900/976 call blocking Inside wire maintenance *New* Eliminated services that do not provide broadband Web hosting E mail Voice mail Eligible Services I Fall 2014 E rate Program Applicant Trainings 7 Draft ESL Category One Eligibility Limitations for Data Plans, Air Cards and Mobile Hotspots for Portable Devices Support is limited to those cases where individual data plans are the most cost effective option for providing internal broadband access for portable mobile devices Funding is considered not cost effective when users can already access the Internet through internal wireless broadband networks Exceptions may include library bookmobiles or where there is a very small number of students or patrons Eligible Services I Fall 2014 E rate Program Applicant Trainings 8 4

5 Draft ESL Category One Eligibility Limitations for Data Plans, Air Cards and Mobile Hotspots for Portable Devices Eligibility requirements: Must be able to demonstrate either that installing a Wireless Local Area Network (WLAN) is not physically possible or Must be able to provide a comparison of the costs to implement an individual data plan versus WLAN solution The cost comparison may be established through the competitive bid process of seeking and comparing bids on both WLANs and individual data plans. Eligible Services I Fall 2014 E rate Program Applicant Trainings 9 Eligible Internal Connections Access points Cabling *NEW* Caching Firewalls Network switches Routers Racks Draft ESL Category Two *NEW*Subject to the Category Two five year budget approach UPS Wireless LAN Controllers Improvements, upgrades and software necessary to support eligible broadband internal connections components Eligible Services I Fall 2014 E rate Program Applicant Trainings 10 5

6 Draft ESL Category Two *NEW* Formerly Eligible as Internal Connections The following are no longer eligible for E rate support: o Circuit Cards/Components o Interfaces o Gateways o Antennas o Servers o Software o Storage Devices o Telephone Components o Video Components o Voice over IP components o Video over IP components Eligible Services I Fall 2014 E rate Program Applicant Trainings 11 *NEW* Caching Draft ESL Category Two WCB sought comment on the definition of caching in the ESL Public Notice Eligible Services I Fall 2014 E rate Program Applicant Trainings 12 6

7 Draft ESL Category Two *NEW* Managed Internal Broadband Services (e.g. Managed Wi Fi) Subject to the Category Two five year budget approach Services provided by a third party Operation Management And/or monitoring of eligible broadband internal connection components The third party may manage the school or library s equipment or provide the equipment as part of a lease Eligible Services I Fall 2014 E rate Program Applicant Trainings 13 Draft ESL Category Two *NEW* Managed Internal Broadband Services (e.g. Managed Wi Fi) Eligibility Limitations Supports only the equipment listed as eligible as a broadband internal connections component Upfront charges as part of the contract are eligible Any ineligible internal connections components (e.g. content filtering) must be cost allocated out Eligible Services I Fall 2014 E rate Program Applicant Trainings 14 7

8 Draft ESL Category Two Basic Maintenance of Internal Connections *NEW* Subject to the Category Two five year budget approach Support for basic maintenance of eligible internal connections such as Repair and upkeep of hardware Wire and cable maintenance Basic tech support Configuration changes Support for BMIC is limited to actual work performed under the contract Eligible Services I Fall 2014 E rate Program Applicant Trainings 15 Draft ESL Category Two Basic Maintenance of Internal Connections Basic maintenance does not include Services that maintain ineligible equipment Upfront estimates that cover the full cost of every piece of eligible equipment Services that enhance the utility of equipment Network management services, including 24 hr network monitoring On site technical support Unbundled warranties Note: Many of the services ineligible under BMIC are eligible as Managed Internal Broadband Services Eligible Services I Fall 2014 E rate Program Applicant Trainings 16 8

9 Draft ESL Miscellaneous Miscellaneous Eligible Charges Taxes, surcharges and other similar reasonable charges Lease fees to rent or lease eligible components Shipping charges Training Installation and configuration *New* Installation may be provided by a third party Eligible Services I Fall 2014 E rate Program Applicant Trainings 17 Leased Lit and Dark Fiber Lit and Dark Fiber There were no changes in the Modernization Order impacting the eligibility of lit and dark fiber An Indefeasible Rights of Use (IRU) is treated as a lease and may be subject to amortization rules Rerouting fiber is considered a special construction charge and not maintenance Warehousing of unlit dark fiber is not eligible Eligible Services I Fall 2014 E rate Program Applicant Trainings 18 9

10 Leased Lit and Dark Fiber Eligibility Matrix Lit and Dark Fiber Description Leased Lit Fiber Leased Dark Fiber Installation within property from bldg to bldg Installation on property from bldg to property line Special construction charges for installation from property line to service provider Monthly service/lease charges Not Eligible Eligible Eligible Eligible Not Eligible Eligible Not eligible Eligible Maintenance charges from bldg to service provider Eligible Eligible 6 Service provider provision of modulating electronics Eligible Not Eligible Eligible Services I Fall 2014 E rate Program Applicant Trainings 19 Increasing Pricing Transparency Pricing Transparency Transparency requirements for both E rate recipients and vendors begin in FY 2015 Provides greater visibility into pricing and technology choices by peers Improves analyses performed by the Commission, state coordinators and third parties regarding the program s effectiveness and potential improvement of cost efficient purchasing Help identify best practices for purchasing and reducing waste Eligible Services I Fall 2014 E rate Program Applicant Trainings 20 10

11 Increasing Pricing Transparency Pricing Transparency In order to create pricing transparency, Item 21 information entered in the FCC Form 471 will be publicly available Applicants may opt out of this public disclosure requirement only if a specific state law or statute, local rule, or other restriction, such as a court order or pre existing contract, which bars publication of the purchasing price data Vendor contracts executed after the effective date of the Order may not contain any restriction barring publication of this pricing data Eligible Services I Fall 2014 E rate Program Applicant Trainings 21 The Bundling Order DA Bundling Order On May 23, 2014, the FCC issued the Bundling Order effective for FY 2015 and forward Applicants must cost allocate non ancillary components including, but not limited to, end user devices such as: Telephone handsets Tablets VoIP handsets Netbooks Computers Laptops Cell Phones Eligible Services I Fall 2014 E rate Program Applicant Trainings 22 11

12 Questions? Eligible Services I Fall 2014 E rate Program Applicant Trainings With questions, please contact us! Phone: (888) Fax: (888) Website: Eligible Services I Fall 2014 E rate Program Applicant Trainings 24 12

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